Various search engine data providers including Google Trend have revealed that the phrase “Buy Bitcoin” has surpassed “Buy Gold” in terms of number of global searches.
Over the past two years, since the beginning of 2016, the demand for Bitcoin as a safe haven asset, store of value, and ultimately, digital gold has increased exponentially. The rapid growth rate of Bitcoin has been evident in its price trend, as the Bitcoin price surpassed the $7,400 mark earlier today, on November 8.
Shown in the infographic below provided by Bloomberg, the phrase “Buy Bitcoin” has overtaken “Buy Gold” by over 70 points based on a 100-point system, as the popularity of gold gradually declined since 2012.
Analysts have stated that the demand for gold as a safe haven asset has declined in general over the past 12 months, with the US stock market recording new highs on almost a weekly basis.
However, the term “distracted” is not the appropriate description to offer in portraying the migration of investors from the gold market to the Bitcoin and cryptocurrency markets. Earlier this week, Leo Melamed, Chairman Emeritus of CME Group, the world’s largest options exchange planning to launch a Bitcoin options exchange by the end of 2017, emphasized that it is an understatement to portray Bitcoin as simply a cryptocurrency.
Melamed noted that Bitcoin is a new asset class, leading a revolutionary movement in the global financial sector. He said:
He added that the introduction of Bitcoin futures will provide liquidity to a whole new sector of investors in institutional and retail traders in the upcoming months, which would allow a market that was previously non-existent to engage in Bitcoin trading.
The rising popularity and mainstream adoption have also directly impacted the decline in demand for gold, as brokerages including BullionVault experienced a sharp decline in volume in the past few months. By early 2018, as Bitcoin further solidifies itself as the leading store of value and safe haven asset, its value will likely increase exponentially in a relatively short-term.
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